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Alex McLeish will leave his position as Rangers manager at the end of the season, the club has confirmed.

BBC Scotland understands former Lyon manager Paul Le Guen will be the man to succeed McLeish, though chairman David Murray would not confirm that.

Murray said on Thursday that McLeish would leave in the summer, with the club "some way down the road" on a deal for a new coach.

"The decision had been made. This is a premature announcement," said Murray.

"It was our intention to make an announcement after the Villarreal games of a major investment and a potential new manager.

"But we felt that, taking all factors into consideration and after discussing the situation collectively with supporters' groups, the board, Alex and some players, the best thing was to announce it is Alex's intention to leave at the end of the season."

McLeish was told on Thursday afternoon that his four-year reign was over, having been spared the sack in December following the worst run in the club's history.

A 2-0 defeat away to Aberdeen in the league, which leaves Rangers 18 points behind leaders Celtic, and a Scottish Cup exit at the hands of Hibs led to Murray bringing forward the announcement of McLeish's departure.

Murray also promised the announcement of a major investment in the club would still be made after the Champions' League ties against Villarreal early next month.

"We'll announce it when it's appropriate. We've got to do it with other people, when they want to do it," he added.

He refused to quantify the investment, but said: "Significant amounts of money will be coming into Rangers Football Club.

"It's obvious Rangers have got to re-invest real money in players. There will be significant funds available to the new manager. It won't be just Bosmans and loan deals."

Bookmaker William Hill is refusing to take bets on the identity of McLeish's replacement.

"It seems to be the case that Le Guen has been lined up to replace McLeish, so we don't believe it is possible to open a book at this stage," a William Hill spokesman said.